Microchip Technology Incorporated (NASDAQ:MCHP) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Microchip Technology has an average rating of "Moderate Buy" from twenty-two analysts, with 13 buy recommendations and one strong buy.
• The company recently increased its quarterly dividend to $0.455 per share, yielding 2.7% annually, despite a high dividend payout ratio of -535.29%.
• Microchip Technology reported Q1 earnings of $0.27 per share, beating estimates, but revenue declined 13.3% year-over-year to $1.08 billion.

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-two analysts that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, seven have given a hold recommendation, thirteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $75.75.

A number of brokerages have recently weighed in on MCHP. Mizuho upped their target price on Microchip Technology from $78.00 to $85.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Susquehanna upped their target price on Microchip Technology from $60.00 to $90.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Microchip Technology in a research report on Wednesday, October 8th. Piper Sandler upped their target price on Microchip Technology from $65.00 to $80.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Finally, Raymond James Financial upped their target price on Microchip Technology from $65.00 to $75.00 and gave the stock a "strong-buy" rating in a research report on Friday, August 8th.

Insider Buying and Selling

In related news, CFO James Eric Bjornholt sold 7,356 shares of the stock in a transaction on Monday, August 25th. The stock was sold at an average price of $68.72, for a total value of $505,504.32. Following the completion of the sale, the chief financial officer directly owned 30,010 shares of the company's stock, valued at approximately $2,062,287.20. This represents a 19.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Matthew W. Chapman sold 10,000 shares of the stock in a transaction on Monday, August 25th. The shares were sold at an average price of $68.25, for a total value of $682,500.00. Following the completion of the sale, the director directly owned 30,665 shares of the company's stock, valued at $2,092,886.25. The trade was a 24.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microchip Technology

A number of institutional investors and hedge funds have recently bought and sold shares of MCHP. GAMMA Investing LLC raised its position in Microchip Technology by 75.0% in the 1st quarter. GAMMA Investing LLC now owns 9,922 shares of the semiconductor company's stock valued at $480,000 after buying an additional 4,252 shares during the last quarter. Janney Montgomery Scott LLC increased its position in shares of Microchip Technology by 7.2% during the 1st quarter. Janney Montgomery Scott LLC now owns 102,491 shares of the semiconductor company's stock valued at $4,962,000 after purchasing an additional 6,857 shares during the last quarter. Garde Capital Inc. purchased a new stake in shares of Microchip Technology during the 1st quarter valued at $30,000. Kentucky Retirement Systems Insurance Trust Fund increased its position in shares of Microchip Technology by 119.5% during the 1st quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 15,420 shares of the semiconductor company's stock valued at $746,000 after purchasing an additional 8,395 shares during the last quarter. Finally, Cambridge Investment Research Advisors Inc. increased its position in shares of Microchip Technology by 63.0% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 59,086 shares of the semiconductor company's stock valued at $2,860,000 after purchasing an additional 22,847 shares during the last quarter. 91.51% of the stock is owned by hedge funds and other institutional investors.

Microchip Technology Price Performance

Shares of MCHP opened at $67.07 on Tuesday. Microchip Technology has a 52-week low of $34.13 and a 52-week high of $79.44. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.33 and a current ratio of 2.31. The business's 50 day moving average price is $65.31 and its two-hundred day moving average price is $61.97. The firm has a market cap of $36.20 billion, a PE ratio of -197.26, a price-to-earnings-growth ratio of 1.87 and a beta of 1.55.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.03. Microchip Technology had a positive return on equity of 6.24% and a negative net margin of 3.50%.The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.05 billion. During the same period in the previous year, the firm earned $0.53 earnings per share. The company's revenue was down 13.3% compared to the same quarter last year. Microchip Technology has set its Q2 2026 guidance at 0.340-0.370 EPS. On average, equities analysts anticipate that Microchip Technology will post 1.03 EPS for the current year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 22nd were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, August 22nd. Microchip Technology's dividend payout ratio is presently -535.29%.

About Microchip Technology

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.

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